1. When God blesses us financially, what does He expect us to do with the abundance?
2. Why might the revenue and cost figures shown on a standard income statement not be representative of the actual cash inflows and outflows that occurred during a period?

3. Discuss some of the uses and limitations associated with performing ratio analysis.
   • Problem:
4. Fill in King, Inc. financial ratios. Comment on strengths and weaknesses.

Forecasted Balance Sheet as of December 31, 2020
Cash		$ 72,000
Accounts receivables		$ 639,000				Accounts and notes payable	$ 432,000
Inventories		$ 994,000				Accruals	$ 170,000
Total current assets		$1,705,000				Total current liabilities	$ 602,000
Land and building		$ 338,000				Long-term debt	$ 604,290
Machinery		$ 132,000				Common stock	$ 775,000
Other fixed assets		$ 61,000				Retained earnings	$ 254,710
Total assets		$2,236,000				Total liabilities and equity	$2,236,000
Forecasted Income Statement for 2020
Sales		$6,390,000
Cost of goods sold		$5,580,000				Per-Share Data
Gross operating profit		$ 810,000				EPS	$
General admin & selling expenses		$ 236,320				DPS	$
Depreciation		$ 159,000				P/E Ratio
Misc. Expenses		$ 34,000				Market price	$ 50.00
Earnings before Taxes		$ 380,680				Number of shares outstanding	20,000
Taxes		$ 126,306
Net Income		$ 254,374
	King, Inc.		Financial Ratios
	Quick Ratio
	Current Ratio
	Inventory Turnover
	Days Sales Outstanding
	Fixed Asset Turnover
	Total Asset Turnover
	Return on Assets
	Return on Equity
	Debt/Equity Ratio
	Profit Margin on Sales
	P/E Ratio